Jim Taiclet, American Tower’s Chief Executive Officer, stated, “U.S Organic Tenant Billings Growth of 7.1%, coupled with solid underlying demand trends in our international markets, drove strong results in the third quarter. Our tenants are making significant investments in their networks as mobile data usage growth continues, and in the U.S., we are now seeing the early stages of 5G spending.

We are focused on positioning the Company to benefit from mobile network technology evolution over the long term through mutually beneficial master lease agreements, continued selective portfolio expansion and our innovation program. We are confident that our strong balance sheet, growing dividend, emphasis on operational efficiency and comprehensive global footprint position us to deliver sustainable growth for years to come.”

CONSOLIDATED OPERATING RESULTS OVERVIEW

American Tower generated the following operating results for the quarter ended September 30, 2019 (all comparative information is presented against the quarter ended September 30, 2018).

(1) Inclusive of the negative impacts of Indian Carrier Consolidation-Driven Churn (“ICCC”). For reconciliations of these impacts on key metrics, please see tables below.

(2) Q3 2019 cash capital expenditures include $18.1 million of finance lease and perpetual land easement payments reported in cash flows from financing activities in the condensed consolidated statements of cash flows.

The Company’s operational and financial results during the third quarter of 2019 were impacted by churn driven by carrier consolidation in India (Indian Carrier Consolidation-Driven Churn, “ICCC”). We are disclosing the additional financial metrics below to provide insight into the underlying long-term trends across the Company’s business excluding these impacts. We expect ICCC to impact our operational and financial results in the fourth quarter of 2019 and to result in an overall reduction in Indian contracted tenant revenue. The impacts of ICCC on net income are not provided, as the impact on all components of the net income measure cannot be reasonably calculated.

Reconciliation of Indian Carrier Consolidation-Driven Churn Impact to Operating Results:

($ in millions, except per share amounts. Totals may not add due to rounding.)

Q3 2019 Results

Q3 2018 Results

Growth Rates vs. Prior Year

As Reported

Impact of ICCC(1)

Normalized

As Reported

Impact of ICCC(1)

Normalized

As Reported

Impact of ICCC(1)

Normalized

Total property revenue……………………………………………

$

1,922

$

91

$

2,013

$

1,752

$

48

$

1,799

9.7

%

2.2

%

11.9

%

Adjusted EBITDA……………………………………………

1,229

63

1,292

1,095

27

1,123

12.2

%

2.9

%

15.1

%

Consolidated AFFO……………………………………………

891

50

941

821

22

843

8.5

%

3.1

%

11.6

%

Consolidated AFFO per Share……………………………………………

$

2.00

$

0.11

$

2.11

$

1.85

$

0.05

$

1.90

8.1

%

2.9

%

11.1

%

Consolidated Organic Tenant Billings……………………………………………

53

55

108

72

31

103

3.7

%

3.7

%

7.4

%

International Organic Tenant Billings……………………………………………

(12

)

55

43

10

31

41

(2.3

)%

10.1

%

7.8

%

_______________

(1) Reflects the cumulative impacts of ICCC since 2017.

Please refer to “Non-GAAP and Defined Financial Measures” below for definitions and other information regarding the Company’s use of non-GAAP measures. For financial information and reconciliations to GAAP measures, please refer to the “Unaudited Selected Consolidated Financial Information” below.

CAPITAL ALLOCATION OVERVIEW

Distributions – During the quarter ended September 30, 2019, the Company declared the following regular cash distributions to its common stockholders:

Common Stock Distributions

Q3 2019(1)

Distributions per share…………………………………………………………………………………………………………………………………..

(1) The distribution declared on September 13, 2019 was paid in the fourth quarter of 2019 to stockholders of record as of the close of business on September 27, 2019.

Capital Expenditures– During the third quarter of 2019, total capital expenditures were $277 million, of which $47 million was for non-discretionary capital improvements and corporate capital expenditures. For additional capital expenditure details, please refer to the supplemental disclosure package available on the Company’s website.

Acquisitions– During the third quarter of 2019, the Company spent approximately $0.5 billion to acquire 615 communications sites and other related assets, primarily through a previously disclosed transaction in the U.S. In addition, the Company spent $43 million to purchase the 243 remaining towers under its previously disclosed sublease agreement, as amended, with ALLTEL Communications, LLC, a predecessor entity to Verizon Wireless.

As previously disclosed, the Company has entered into a definitive agreement to acquire Eaton Towers Holding Limited (“Eaton Towers”) for total consideration, including the assumption of existing debt, of approximately $1.85 billion. The Company continues to expect the transaction to close by the end of 2019, subject to customary closing conditions and regulatory approvals. Subject to the closing of the Eaton Towers transaction, the Company anticipates acquiring the interests of its joint venture partner, MTN Group Limited, in each of the joint ventures in Ghana and Uganda.

Other Events – In April 2019, Tata Teleservices Limited (“Tata Teleservices”) served notice of exercise of its put options with respect to 100% of its remaining combined holdings with Tata Sons in ATC Telecom Infrastructure Private Limited (“ATC TIPL”). The Company now expects to complete the redemption of the remaining put shares in Q4 2019 for total consideration of approximately INR 24.8 billion (approximately $350 million as of September 30, 2019), subject to regulatory approval. After the completion of the redemption, the Company will hold an approximately 92% ownership interest in ATC TIPL.

Additionally, in the third quarter of 2019, the Company signed a new master lease agreement (“MLA”) with AT&T Inc. in the U.S. The Company’s third quarter 2019 results and revised full year 2019 outlook include the impacts of the MLA.

Liquidity– As of September 30, 2019, the Company had $5.2 billion of total liquidity, consisting of $1.4 billion in cash and cash equivalents plus the ability to borrow an aggregate of $3.8 billion under its revolving credit facilities, net of any outstanding letters of credit.

On October 3, 2019, the Company issued $750.0 million aggregate principal amount of 2.750% senior unsecured notes due 2027 and $600.0 million aggregate principal amount of 3.700% senior unsecured notes due 2049. The Company used the net proceeds to repay existing indebtedness under its 2013 credit facility and its 2019 term loan.

FULL YEAR 2019 OUTLOOK

The following full year 2019 financial and operational estimates are based on a number of assumptions that management believes to be reasonable and reflect the Company’s expectations as of October 31, 2019. Actual results may differ materially from these estimates as a result of various factors, and the Company refers you to the cautionary language regarding “forward-looking” statements included in this press release when considering this information.

The Company is raising the midpoint of its full year 2019 outlook for property revenue, net income, Adjusted EBITDA and Consolidated AFFO by $180 million, $145 million, $180 million and $5 million, respectively, as compared to the Company’s outlook issued on July 31, 2019. The increases in property revenue, net income and Adjusted EBITDA include approximately $167 million in additional straight-line revenue as a result of the Company’s new MLA with AT&T.

The Company’s outlook reflects estimated unfavorable impacts of foreign currency exchange rate fluctuations to property revenue, Adjusted EBITDA and Consolidated AFFO, of approximately $32 million, $16 million and $13 million, respectively, as compared to the Company’s outlook issued on July 31, 2019. The impact of foreign currency exchange rate fluctuations on net income is not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort.

The Company’s full year 2019 outlook also reflects estimated cumulative expected unfavorable impacts of ICCC on property revenue, Adjusted EBITDA and Consolidated AFFO of approximately $367 million, $254 million and $203 million, respectively, inclusive of an expected reduction in pass-through revenue of approximately $84 million and the benefit of approximately $27 million in ICCC-related settlement payments in 2019. The expected 2019-specific impacts of ICCC to property revenue, Adjusted EBITDA and Consolidated AFFO are $178 million, $134 million and $107 million, respectively, including $23 million in lower pass-through revenue and the benefit of ICCC-related settlement payments. At this time, the Company expects the impacts of ICCC to last throughout the remainder of 2019. The Company is providing key outlook measures adjusted to quantify the impacts of ICCC on such measures and the impact of ICCC and the Company’s settlement with Tata Teleservices and related entities (“Tata”) in the fourth quarter of 2018 on growth rates as it believes that these adjusted measures better reflect the long-term trajectory of its recurring business and provide investors with a more comprehensive analysis of the Company’s operations. The impacts of ICCC and the Tata settlement on net income are not provided, as the impact on all components of the net income measure cannot be calculated without unreasonable effort.

Additional information pertaining to the impact of foreign currency, London Interbank Offered Rate (“LIBOR”) fluctuations and ICCC on the Company’s outlook has been provided in the supplemental disclosure package available on the Company’s website.

2019 Outlook ($ in millions)

Full Year 2019

Midpoint Growth Rates

vs. Prior Year

Total property revenue(1)…………………………………………………………………………………………………

$

7,420

to

$

7,480

1.8%

Net income…………………………………………………………………………………………………

1,750

to

1,790

39.9%

Adjusted EBITDA…………………………………………………………………………………………………

4,690

to

4,730

0.9%

Consolidated AFFO…………………………………………………………………………………………………

3,480

to

3,520

(1.1)%

_______________

(1) Includes U.S. property revenue of $4,170 million to $4,190 million and international property revenue of $3,250 million to $3,290 million, reflecting midpoint growth rates of 9.4% and (6.4)%, respectively. The U.S. growth rate includes a positive impact of approximately 2% associated with an increase in non-cash straight-line revenue recognition. The international growth rate includes estimated negative impacts of approximately 15% attributable to ICCC and the non-recurrence of the Tata settlement, and approximately 4% from the translational effects of foreign currency exchange rate fluctuations. International property revenue reflects the Company’s Latin America, EMEA and Asia segments.

2019 Outlook for Total Property revenue, at the midpoint, includes the following components(1):

($ in millions, totals may not add due to rounding.)

U.S. Property

International

Property(2)

Total Property

International pass-through revenue…………………………………………………………………………………………………………………

Reconciliation of Indian Carrier Consolidation-Driven Churn Impact to 2019 Outlook:

($ in millions, except per share amounts. Totals may not add due to rounding.)

FY 2018 Results

2019 Outlook, at the Midpoint

Midpoint Growth Rates vs.

Prior Year

As Reported

Impact of

Tata Settlement(1)

Impact of

ICCC(2)

Normalized

As Reported

Impact of

ICCC(2)(3)

Normalized

As Reported

Impact of

ICCC and

Tata

Settlement(3)(4)

Normalized

Total property revenue(5)………………………….

$

7,315

$

(334

)

$

189

$

7,170

$

7,450

$

367

$

7,817

1.8

%

7.2

%

9.0

%

Adjusted EBITDA………………………….

4,667

(327

)

120

4,459

4,710

254

4,964

0.9

%

10.4

%

11.3

%

Consolidated AFFO………………………….

3,539

(313

)

96

3,322

3,500

203

3,703

(1.1

)%

12.6

%

11.5

%

Consolidated AFFO per Share(6)………………………….

$

7.99

$

(0.71

)

$

0.22

$

7.50

$

7.87

$

0.45

$

8.32

(1.5

)%

12.4

%

10.9

%

Consolidated Organic Tenant Billings………………………….

275

—

128

403

223

210

433

~4

%

~3-4

%

>7

%

International Organic Tenant Billings………………………….

32

—

128

160

(37

)

210

172

~(1-2

)%

~10

%

~8

%

_______________

(1) Includes the one-time net positive impacts to 2018 property revenue, Adjusted EBITDA and Consolidated AFFO related to the Company’s settlement with Tata. Churn associated with the settlement is reflected in the ICCC column.

(2) Reflects the cumulative impacts of ICCC since 2017.

(3) Includes the impact of approximately $27 million in ICCC-related settlement payments.

(4) Reflects the cumulative impacts of ICCC since 2017 and the 2018 impacts of the Tata settlement.

(5) Expected ICCC impacts include a cumulative decline of approximately $61 million and $84 million in pass-through revenue for 2018 and 2019, respectively.